Hello Capitalists,

Wholesale inflation remained unchanged in June as the worries by economists (and the Jerome Powell) failed to materialize. All signs point to a crypto rally lead by Bitcoin in the near future. (despite the procedural stumble in Congress during “Crypto Week.”) Even noted crypto skeptic JP Morgan is getting in on the game.

• DOW: 44008.50 - (⬇️0.03)🔴

• S&P: 6234.84 - (⬇️0.14) 🔴

• NASDAQ: 20633.65 - (⬇️0.21) 🔴

• CBOE VIX Volatility Index: 17.76 (⬆️0.38) ⚠️⬆️

Here’s everything you need to be following today:

Trump’s Tariffs have not produced skyrocketing inflation that critics warned off

Wholesale prices in the U.S. remained unchanged in June, defying expectations of a 0.2% increase, as rising goods prices were offset by a decline in services, signaling that President Donald Trump's tariffs have yet to significantly fuel inflation, the Bureau of Labor Statistics reported Wednesday.

• The Producer Price Index (PPI) for June showed no change, against expectations of a 0.2% rise, with core PPI also flat, indicating subdued wholesale inflation.

• Final demand goods prices increased by 0.3%, driven by a 0.6% rise in energy and a 0.8% gain in tariff-sensitive communication equipment, while services prices fell 0.1%.

• On a year-over-year basis, headline PPI rose 2.3%, the lowest since September 2024, and core PPI increased 2.6%, the smallest gain since July 2024.

• The data, combined with the recent Consumer Price Index report, suggests Trump's tariffs have had a marginal impact on the economy, with markets expecting the Federal Reserve to hold rates steady in July. This has lead to considerable friction between the White House and the Fed Chair Jerome Powell

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Crypto bubbles quietly as it awaits Congressional bills to pass

Bitcoin briefly dipped below $117,000 before recovering slightly, while Ethereum held above $3,100, as investors navigated U.S. legislative uncertainties during "Crypto Week" and robust inflows into cryptocurrency ETFs continued to drive market momentum.

• Bitcoin Price Movement: Bitcoin fell below $117,000 on Tuesday, July 15, 2025 at 10AM, after cryptocurrency-related bills were blocked in the House, but it later stabilized, with prices reflecting a pullback from recent highs above $123,000 amid ongoing institutional buying.

• Ether and ETF Inflows: Ether maintained strength above $3,100, supported by $383.1 million in ETF inflows, marking the second-largest daily inflow for ether ETFs in 2025, while Bitcoin ETFs saw $1.18 billion in inflows, the highest this year.

• Legislative Developments: The U.S. House’s "Crypto Week" faced setbacks as three crypto-related bills, including the GENIUS Act for stablecoin regulation and the CLARITY Act for market structure, were stalled as GOP House members demanded stronger provisions against government spying on crypto transactions.

• Market Sentiment and Altcoins: Despite $550 million in Bitcoin short liquidations and $195 million for Ether, altcoins like XRP and Dogecoin gained traction, with memecoins showing strong retail interest, signaling a broader market rally amid regulatory anticipation.

What happened to the Crypto bills in Congress and why did it happen?

Several cryptocurrency regulation bills backed by President Donald Trump failed to clear a key procedural hurdle in the House of Representatives on Tuesday, dealing a blow to the crypto industry’s hopes for legislative wins during what was billed as “Crypto Week.”

• Procedural Failure: Cryptocurrency-related bills, including the GENIUS Act for stablecoin regulation and the CLARITY Act for market structure, failed a key House procedural vote (196-223), with 13 Republicans joining Democrats to block advancement.

• Trump’s Involvement: President Trump, a vocal supporter of the bills, intervened after the failure, announcing a White House meeting with Republican holdouts, claiming they agreed to support a revote to advance the legislation.

• Market Impact: The vote failure led to a drop in crypto-related stocks, with Circle falling over 7%, Coinbase declining 1.5%, and Bitcoin dropping below $117,000, reflecting market disappointment.

• “Crypto Week” Context: Billed as “Crypto Week,” the House aims to pass significant crypto legislation, including a bill to ban central bank digital currencies that would prevent government intervention from manipulating crypto values and monitoring transactions by holders.

JP Morgan bends the knee, finally admits that they are exploring stablecoins under industry pressure

JPMorgan Chase, the largest bank in America, will explore stablecoins and its own deposit coin to counter fintech competition, despite CEO Jamie Dimon's skepticism about their value compared to traditional payment systems, the bank announced during an earnings call Tuesday.

• JPMorgan's Stablecoin Involvement: CEO Jamie Dimon announced that JPMorgan Chase (JPM) will engage with stablecoins and its own deposit coin to stay competitive in the global payments industry, where it processes nearly $10 trillion daily.

• Skepticism Despite Participation: While Dimon acknowledges stablecoins as "real," he questions their necessity over traditional payments, maintaining his critical stance on cryptocurrencies like bitcoin.

• Fintech Competition Drives Move: The decision is motivated by the need to keep pace with fintech firms such as Ripple, Hedra and XLM innovating in payment systems, bank accounts, and rewards programs, which could seriously disrupt traditional banking.

• Potential Bank Collaboration: Dimon hinted at possible collaboration with other banks, similar to the Zelle initiative, but declined to provide specifics on joint stablecoin efforts.

Rolls-Royce beefs up its data center play with $75m for South Carolina

Rolls-Royce, the British aerospace and defense giant, announced a $75 million expansion of its Aiken County, South Carolina, engine manufacturing facility on Tuesday, a move that will create 60 new jobs and boost production of diesel engines for the booming U.S. data center industry.

• Rolls-Royce (RYCEY) is investing $75 million to expand and increase production of mtu Series 4000 diesel engines used in backup power systems for data centers and critical infrastructure.

• The expansion will create 60 new jobs and enhance machining capabilities, reducing reliance on components produced in Germany and shipped to the U.S.

• The project, set to begin in early 2026 with production starting in July 2027, will position the Aiken facility as a key hub in Rolls-Royce’s North American power systems strategy.

• This investment reflects Rolls-Royce’s strategic shift toward energy and power systems, aligning with growing U.S. demand for reliable, domestically produced energy solutions.

GM announces details of where they will build more gas powered cars and its good news for Texas and Michigan

General Motors announced Tuesday it will shift production of the Cadillac Escalade to its Orion Assembly plant in Michigan and expand manufacturing for other vehicles there.

• General Motors (GM) will move expand production of Chevrolet Silverado and GMC Sierra light-duty pickups to the same facility starting in early 2027.

• The move is part of GM’s $4 billion investment in U.S. facilities, announced in June, aimed at increasing domestic production of gas-powered vehicles in response to strong customer demand.

• The Orion Assembly plant, previously set to produce electric trucks, will now focus on gas-powered SUVs and pickups, while GM’s Factory ZERO in Detroit-Hamtramck will exclusively assemble electric vehicles like the Chevrolet Silverado EV and Cadillac Escalade IQ.

• The production shift allows GM’s Arlington Texas plant to increase output of other large SUVs like the Chevrolet Tahoe and GMC Yukon, which have seen significant sales growth.